Positions of China and Brazil On De-Dollarization of International Economic Relations and Prospects for Creating a New World Currency

The paper is devoted to the consideration of the PRC and Brazil stances on the de-dollarization of international economic relations and the expansion of the practice of international payments in national currencies. The use of currencies other than the dollar is seen a logical starting point towards liberating the economic relations of the non-Western world from the pressure of the collective West. This pressure, implemented largely due to the fact, that dollar maintains the function of a world currency (according to K. Marx — “world money”), is aimed to tie economic policies and practices of US counterparties, including China and Brazil, to the American currency as a means of manipulating the world economic interests of other countries. The issue of creating international currency units alternative to the dollar is increasingly being raised in political and academic communities. China and Brazil are members of the BRICS forum, which currency’s creation is widely discussed at the international level. The author believes that the likelihood of creating such a currency is now low due to the peculiarities of the global financial and political situation, as well as the insufficient degree of integration within the BRICS itself. If the creation of a new currency (within the framework of a non-Western international structure) begins, then one of the ways of this is the formation of a currency basket in which the yuan can receive the greatest weight. However, the most achievable way of dedollarization seems a broad transition to the use of national currencies in global trade, investment and lending. The next step may be to create not a currency, but a special international unit of account, what is easier to do.

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Publication Details

Journal
Problemy Dalnego Vostoka
Published
2024-09-19
DOI
https://doi.org/10.31857/s0131281224030055
Primary Topic
Global Financial Crisis and Policies
Type
article
Field-Weighted Citation Impact
0.00

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article

Positions of China and Brazil On De-Dollarization of International Economic Relations and Prospects for Creating a New World Currency

Elena Safronova
Problemy Dalnego Vostoka
Global Financial Crisis and Policies
article

Positions of China and Brazil On De-Dollarization of International Economic Relations and Prospects for Creating a New World Currency

Elena Safronova
article en

Abstract

The paper is devoted to the consideration of the PRC and Brazil stances on the de-dollarization of international economic relations and the expansion of the practice of international payments in national currencies. The use of currencies other than the dollar is seen a logical starting point towards liberating the economic relations of the non-Western world from the pressure of the collective West. This pressure, implemented largely due to the fact, that dollar maintains the function of a world currency (according to K. Marx — “world money”), is aimed to tie economic policies and practices of US counterparties, including China and Brazil, to the American currency as a means of manipulating the world economic interests of other countries. The issue of creating international currency units alternative to the dollar is increasingly being raised in political and academic communities. China and Brazil are members of the BRICS forum, which currency’s creation is widely discussed at the international level. The author believes that the likelihood of creating such a currency is now low due to the peculiarities of the global financial and political situation, as well as the insufficient degree of integration within the BRICS itself. If the creation of a new currency (within the framework of a non-Western international structure) begins, then one of the ways of this is the formation of a currency basket in which the yuan can receive the greatest weight. However, the most achievable way of dedollarization seems a broad transition to the use of national currencies in global trade, investment and lending. The next step may be to create not a currency, but a special international unit of account, what is easier to do.

Problemy Dalnego Vostoka(3)
China Institutes of Contemporary International Relations (CN)
Russian Academy of Sciences
Openalex Percentile: Top 79%
Global Financial Crisis and Policies
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